Deterministic trends are
A)where variables change by some random amount in each time period.
B)always constant and dependent of time for the series being analyzed.
C)constant, positive or negative independent of time for the series being analyzed.
D)always positive.

Question

Quizplus · Accepted Answer

Deterministic trends are always constant, and can either be positive or negative depending on the series being analyzed. They are not random and do not fluctuate. Therefore, choice C is the correct answer. Choices A, B, and D are incorrect because they do not accurately describe deterministic trends.

Deterministic Trends Are